Banks Get Temporary Pause on Illinois Swipe Fee Restrictions (3)

An Illinois law barring swipe fees on retail taxes and tips was placed on hold for national banks, but it will still apply for now to payment card networks such as Visa Inc. and Mastercard Inc.

The American Bankers Association, the Illinois Bankers Association, and other co-plaintiffs had sufficiently shown that federal law prevented the Illinois Interchange Fee Prohibition Act from applying to national banks, and that a preliminary injunction was necessary as the litigation continued, Judge Virginia M. Kendall of the US District Court for the Northern District of Illinois said in a Friday ruling.

The banking trade ...